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Vilnius, 6 July 2005 Distinguished Ambassadors,Excellencies,Ladies and Gentlemen, It is my pleasure to welcome you all in Vilnius. Some of you had to go a rather long way to participate in this conference. Thus, I am really pleased to see you all here. I believe that today and tomorrow we will have enough activities to reinvigorate our relations, and also to show you the best of our country. Last time we met a year ago, Lithuania was opening a new page of its political and economic transformation. Our country had just become a member of the European Union and NATO. Thus, defining our new tasks and missions in these two organizations was a dominant issue. We have agreed since that summer that, in its new status, Lithuania will seek to address three major objectives: -  firstly, to facilitate its growth and consolidation as a full-fledged European democracy; -  secondly, to help expand the zone of security and stability, also in order to insure her own security; -  and thirdly, to contribute creatively to the development of the European Union and NATO, with a vision of a strong and consolidated Europe firmly set into the transatlantic framework. In this respect, we consider our first year of membership a big success. Our economy continued to grow at a rate close to 7 percent. Our exports expanded by one-fifth. Foreign investment grew by nearly €1 billion. Unemployment has dropped from 13 to 10 percent. At the same time, inflation remained below 3 percent. After so many years Lithuania is firmly, and we hope forever, anchored in the family of Western democracies. The membership of the European Union and NATO has changed the world for us.  Old fears are gone, and we focus now more systematically on future projects. Here, in this future, I see great opportunities of expanding our cooperation. Let’s take business cooperation as an example. Lithuania is currently undergoing a major restructuring of its economy. We need investment, first of all in such sectors as energy saving, infrastructure development, knowledge economy and environment. I believe that new partnerships could emerge in these areas, with participation of not only Lithuanian Government and the EU, but also of private investors from your countries. I therefore urge you, distinguished Ambassadors, to convey this message to your local business communities: Lithuania is open to new investment. Of course, Lithuania is not only a place for business partnerships. For more than a decade we have been strengthening political partnerships in our region. In addition to those regional organizations where Lithuania is an active member, we also participate in a wide range of informal frameworks which have emerged after enlargement.  We are very glad about the evolving Nordic-Baltic cooperation. Our strategic relations with Poland were reinforced during the Ukrainian crisis. Furthermore, the joint Baltic-Polish initiatives have enriched and complemented the Baltic Three cooperation. We also expect that our relations with Germany will receive a fresh impetus during the forthcoming visit of President Adamkus to that country. Evidently, the Baltic Sea cooperation emerges as an important part of the overall EU cooperation. But as a truly European region, we also seek to reach out to our friends and partners in the European Neighborhood. In this context, Lithuania would like very much to expand cooperation with the Visegrad group and Central Europe in general. Our vision of Europe ‘from the Baltic to the Black Sea’ includes not only Ukraine and its neighbors, but also Western Balkans. Lithuania has vested interests in both directions, so we count on your whole-hearted support. Last year NATO and EU’s cooperation with neighbors expanded significantly. EU Action Plans were concluded with Ukraine, Moldova and Georgia. On a parallel track, NATO Individual Partnership Action Plans were extended to all South Caucasus nations. This heavier Western involvement in the region has improved preconditions for developing new partnerships across the borders. This process is now spilling over into new geographic areas. After fourteen years of impasse, Ukraine and Moldova are beginning real talks about solving the Transnistria problem. Ukraine has become a ‘strategic partner’ for Georgia. The search for new partnerships has rejuvenated even such regional structures as GUAM. Our support to this process is critical. The Euro-Atlantic community should articulate its policies in the region more specifically. The prospect of membership should not be excluded. It has a strong appeal. It can help the so-called ‘New Democracies’ to consolidate their transition efforts and achieve better results.  In the meantime, we could support New Democracies on a practical level. Ukraine could be offered visa facilitation and a free trade agreement by the end of this year. We also support the idea of launching EU monitoring on the Ukrainian-Moldovan border, which would draw on the recent EU experience in Georgia. In 2007, the EU will have to review its Partnership and Cooperation Agreements with major partners, including Russia. Also, pressure for NATO further enlargement will grow. Shall we propose new-quality partnerships for such partners like Ukraine? We suggest that these issues be discussed informally, in a series of regional conferences, one of which would be held in Vilnius next May. In these discussions, we could also address our cooperation with Russia. This cooperation has been very dynamic last year. There were ups and downs, but the general trend was sustainable. Transit issues were handled properly. Furthermore, Lithuania-Russia Intergovernmental Council resumed its activities thus facilitating our bilateral dialogue on important issues.  All we want in relations with Russia is more trust and more real action.  We need our little success stories to move cooperation forward. Kaliningrad was, and we hope will remain, our shared success story. The new situation of Kaliningrad after enlargement creates even better possibilities for jointly promoting this region’s social and economic development. Lithuania is interested in developing cooperation on Kaliningrad, just like any other joint initiative which helps integrate Russia more closely with the European and transatlantic community. The so-called ‘Four Spaces’ initiative of the EU is a good start. We wish it could accelerate in such areas as transport, environment and, of course, energy cooperation. To have these initiatives materializing, the EU will need a more coherent policy toward Russia. And not only Russia. The EU needs a clearer strategy for itself, especially after the failed referenda in France and the Netherlands. It is symbolic that have we started discussing the European future from the EU budget. Last June in Brussels, we lost a budget which was good for Lithuania. However, our hope for a stronger and more effective Europe was not lost. We really hope that the next Financial Perspectives will be agreed before the end of this year. And we really want this agreement to fit the 21st century needs. In fact, a discussion on Financial Perspectives should not limit itself on the future of Common Agricultural Policy. We also need to discuss the four freedoms, better regulation, as well as the development of EU institutions. Europe needs strong institutions to promote old and new partnerships. Thus,  the debate on European External Action Service is not yet exhausted. Now a few words on NATO. Recently, the Secretary General has issued guidelines on NATO’s transformation. Some of his ideas have much in common with the initiatives discussed within the EU. Therefore, we believe it would be useful to have NATO debate and EU debate intersecting at some point. We want NATO to remain the most important venue of transatlantic discussion. Obviously, an Alliance which limits itself to narrow specific tasks would not fit for that role. NATO should have a broader agenda which promotes harmony between foreign policy and security agendas. How much foreign policy coordination do we have between transatlantic allies today? Our policies in Afghanistan have been a success. Even small countries like Lithuania have a role in the post-war reconstruction of this country. As a lead nation, we are engaged in helping to rebuild the Ghowr province in Afghanistan. We are proud to be there as both Europeans and members of the North Atlantic Alliance. Also, a significant progress has been achieved in rebuilding the peace in Iraq. Yet further progress in this region is closely related with the overall situation in Wider Middle East. We follow closely the ongoing talks with Iran regarding its nuclear programs. And we are concerned that a failure to develop a single policy in this area might renew transatlantic divisions. We are interested that the EU as a whole deepens and broadens its partnerships with the United States and Canada. They should advance at least so quickly as EU-Russia cooperation.  We see transatlantic partnership as the linchpin of the 21st century global security. Even as we speak of extending our support to African countries, transatlantic cooperation is critical. Membership of the European Union and NATO has increased our responsibility for global development. I am glad to confirm that our Government will seek to increase contributions to aid and development policies. Our interest in new partnerships covers not only Europe but also Africa, Asia, Latin America and the Pacific. The ongoing debate on UN reform provides good opportunities to discuss that global picture. I therefore invite you to grasp these opportunities and expand dialogue between your countries and Lithuania. Ladies and Gentlemen, In conclusion, I would like to briefly return to ongoing celebrations in Lithuania. Today we mark the 752nd anniversary of coronation of Lithuanian King Mindaugas. In other words, we celebrate Lithuania’s first marriage to the family of European nations. I am glad we can share the joy of the celebrations with you. Your presence today is very important. It not only helps building new bridges between your countries and Lithuania, but also helps to promote new human partnerships, which are so vital to building a better world for the future. So once again I thank you all for coming. I wish you a pleasant stay in Vilnius, and interesting discussions during your meetings today and tomorrow. Thank you.